The Dynamics of Performance Volatility and Firm Valuation
构建模型揭示现金流波动性与企业估值倍数（Q）的正向关联，发现该关系受企业规模、投资机会及市场板块间相关性影响，实证结果支持模型预测。
We construct a model to illustrate the dynamics of cash-flow volatility (CFV) and firm valuation. As a firm progressively invests in its growth opportunities, its book value increases and catches up with its market value, reducing the valuation multiple (Q). CFV decreases because of the diversification effect of investing in more market segments. We document a positive CFV–Q association, which varies with firm size, investment opportunities, and the correlation across market segments. Empirical findings strongly support the model’s predictions and are robust to alternative explanations offered by extant studies on firm growth, volatility, and valuation.